Traditional Factoring is a business transaction whereby the business sells its accounts receivable invoices at a discount. Factoring is also referred to as accounts receivable financing. Designed to provide the necessary cash flow to meet the ongoing needs of the business, Factoring provides the company the working capital needed to sell to their customers on terms. Factoring or Accounts receivable financing is considered an alternative financing source for companies that may or may not qualify for traditional loans or grants. This type of financing focuses on the credit worthiness of the business customer rather than the business itself.
New companies without established credit and rapidly growing companies are most commonly benefited by Factoring. However, Factoring can provide a “Bridge Loan” to companies awaiting additional investors or traditional bank financing. Performance Funding Group has worked with all types of companies to structure the right financing package to suit the individual company needs.